A stock has a 2-year average return of 38.9 percent. What is the average annual return?
A) 19.45%
B) 12.80%
C) 77.80%
D) 10.34%
E) 6.23%

Name: A stock has a 2-year average return of 38.9 percent. What is the average annual return? A) 19.45% B) 12.80% C) 77.80% D) 10.34% E) 6.23%
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Question

Quizplus · Accepted Answer

To find the average annual return, we need to divide the 2-year average return by the number of years (2):

Average annual return = 38.9% ÷ 2 = 19.45%

Therefore, the best choice is A, which is the answer in percentage format.

A Stock Has a 2-Year Average Return of 38